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BJ’s Soars on Sale Consideration

WESTBOROUGH, Mass. — Shares of BJ's Wholesale here shot up more than 12% Thursday as the company said it was considering a possible sale of the company, confirming recent speculation that the club-store operator would put itself on the block.

WESTBOROUGH, Mass. — Shares of BJ's Wholesale here shot up more than 12% Thursday as the company said it was considering a possible sale of the company, confirming recent speculation that the club-store operator would put itself on the block.

In a prepared statement, the company said a committee of independent directors has engaged Morgan Stanley to assist in pursuing strategic alternatives, including a possible sale. Shares closed above $48, and reports said some analysts expected the company could fetch $54 per share or more in a bidding war by private equity.

BJ's has long been the subject of buyout speculation, which intensified last summer when Los Angeles-based private equity firm Leonard Green and Partners acquired a 9% stake in the club-store chain and said it planned to discuss taking the company private. Analysts have suggested new owners could seek to expand the chain into new markets beyond its current East Coast footprint, which includes 189 stores in 15 states.

In its statement last week, BJ's said there was "no timetable" for the process.